13 Feb 2015
EUR/NOK aims to 8.50 in 3-month – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank forecast the cross to head towards 8.5000 in a 3-month horizon.
Key Quotes
“With the current oil price significantly lower than Norges Bank’s projection from December we do, however, still expect Olsen to cut rates in March by 25bp”.
“In light of the current market pricing (suggesting only a 45% chance of a 25bp cut in March) we expect EUR/NOK to move temporarily higher in the coming month”.
“As flagged above, we expect the Norwegian economy to hold up well while the oil price gradually rises throughout the year”.
“Hence, we expect a dovish surprise in March but in our view the market is too dovish in the medium to long term, expecting more than two rate cuts in 2015”.
“We expect a re-pricing of Norges Bank, ECB QE and an oil price recovery to drag the cross lower towards 8.50 in 3M, 8.25 in 6M and 8.15 in 12M”.
Key Quotes
“With the current oil price significantly lower than Norges Bank’s projection from December we do, however, still expect Olsen to cut rates in March by 25bp”.
“In light of the current market pricing (suggesting only a 45% chance of a 25bp cut in March) we expect EUR/NOK to move temporarily higher in the coming month”.
“As flagged above, we expect the Norwegian economy to hold up well while the oil price gradually rises throughout the year”.
“Hence, we expect a dovish surprise in March but in our view the market is too dovish in the medium to long term, expecting more than two rate cuts in 2015”.
“We expect a re-pricing of Norges Bank, ECB QE and an oil price recovery to drag the cross lower towards 8.50 in 3M, 8.25 in 6M and 8.15 in 12M”.